Triton Minerals impresses with up to 28.6% graphite at Balama North

2014-01-22
by Proactive Investors

Triton Minerals (ASX: TON)
has highlighted the potential of its Balama North project in Mozambique
to host multiple world class graphite deposits with initial drilling
intersecting near surface high grade material of up to 28.6% graphite.

Widths and grades were impressive and demonstrate the possible scale of the graphitic mineralisation at Balama North.

The
initial two hole diamond drill program at Nicanda Hill confirmed
multiple zones of high grade graphitic material over significant widths
with notable intersections including:

Balama North is located along strike to Syrah’s massive Balama East
Deposit, that is acknowledged as the largest known graphite deposit in
the world. Construction at Balama East is expected to start once the wet
season ends about April 2014.

“These drilling results follow
on from the previously announced rock chip sample results obtained from
the Nicanda Hill prospect, which identified high grade large flake
graphitic mineralisation, with graphite flake sizes up to 1mm, and
continue to support Triton’s belief that the Balama North project has
the potential to host multiple world class graphite deposits.”

Drilling Details

The
results of the two holes on the southern edge of the main target area
at Nicanda Hill are especially pleasing considering the time constraints
of the imminent wet season.

The very high grade of 28.6%
graphite carbon was intersected just 17 metres down hole in TMBD0005.
This zone appears to be moderately dipping to the northwest and is
intersected below 100 metres in hole TMBD0006.

TMBD0006
intersected multiple zones containing graphite for a cumulative drilled
width of 156 metres and was terminated still in graphitic material, due
to the actual commencement of the wet season.

Both holes were designed to provide a preliminary test of the graphitic succession that outcrops on the Nicanda Hill prospect.

The
limited drill program has helped to indicate that the graphite
mineralisation zone the Nicanda Hill prospect is at least 200 metres
wide at surface and 150 metres deep.

Furthermore, there is over
3.75 kilometres of graphitic schist outcropping identified indicating
the potential of the Nicanda Hill prospect to host a very large high
grade graphite deposit.

These drilling results provide the
company confidence of obtaining further exploration success and to
proceed with a more detailed drilling program along the 5 kilometre
graphitic mineralisation zone identified on the Nicanda Hill prospect.

A
more detailed exploration and drilling program is currently being
designed to further delineate the graphite mineralisation on the Nicanda
Hill prospect.

This will also enable Triton to better
understand the continuity of the graphite mineralisation between the
Cobra Plains and Nicanda Hill prospects.

Other Exploration

Triton
is also waiting on the infill drilling results from the Cobra Plains
prospect, rock chip samples from Black Hills and Charmers prospects and
the Nicanda Hill prospect trenching samples.

The diamond drill
samples were analysed at SGS Laboratories (South Africa) for carbon in
graphite, total carbon and total sulphur analyses. A suite of samples
have also been collected for petrographic analyses to characterise the
nature of the graphite flake and gangue mineral associations.

This
petrographic data will feed into the design of the metallurgical test
work program that the company will be looking to commence shortly, in
conjunction with a refined scoping study.

It also expects geological consultants Optrio to complete in the first quarter of 2014 a Resource for the Cobra Plains prospect.

This
is a very significant milestone at this stage of the Cobra Plains
prospect, and the potential development into a graphite mine in the
future.

Balama North

Initial exploration
at Balama North had suggested the graphite mineralisation has developed
along the same sub-structure which extends in a north-east direction
from Balama East.

This has since received support from sampling and initial drilling.

Triton
had in November, moved to a 60% controlling interest in key graphite
projects in Mozambique, after finalising an increase from a 49% stake
with its joint venture partner, unlisted Grafex Ltd.

The change
is significant as a shareholding below 50% would have rendered future
development decisions and funding for Balama and Anucabe projects more
difficult to complete. It should significantly assist with timelines for
exploration and development.

At the commencement of a Definitive
Feasibility Study, Triton can move to a 75% equity interest in Grafex
and 80% should a project move into graphite production.

Analysis

Shares in Triton Minerals are expected to trade higher today with the strong initial drilling
results with grades of up to 28.6% and significant widths and multiple
zones of high grade graphite mineralisation the proof in the pudding for
the company that its Balama North has the potential to host multiple
world class graphite deposits.

There is more news in the
pipeline, including the infill drilling results from the Cobra Plains
prospect, rock chip samples from Black Hills and Charmers prospects and
the Nicanda Hill prospect trenching samples.

A Resource estimate for Cobra Plains is also due this quarter, which will turn lead to a Scoping Study.

Given
these drill results (just the southern edge of the main target area at
the Nicanda Hill has been drilled) and others received to date, just how
large the total graphitic mineralisation is at Balama North - is -
indeed the $64 million question. On today's results, the bar is lifted.